H.B. 1008

1

TRANSPORTATION INVESTMENT ACT
2 2005 FIRST SPECIAL SESSION
3 STATE OF UTAH
4 Sponsor: Rebecca D. Lockhart
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Motor Vehicles Code, the Sales and Use Tax Act, the Motor and
9 Special Fuel Tax Act, the State Appropriations and Tax Limitation Act, and the
10 Transportation Code by amending provisions to increase funding for transportation.
11 Highlighted Provisions:
12 This bill:
13 . creates the Transportation Investment Fund of 2005 to pay the costs of maintenance,
14 reconstruction, or renovation to state and federal highways;
15 . redesignates the Centennial Highway Fund as a restricted account within the
16 Transportation Investment Fund of 2005;
17 . transfers the Centennial Highway Fund Restricted Account revenue sources to the
18 Transportation Investment Fund of 2005 when the highway general obligation
19 bonds have been paid off and the highway projects completed that are intended to
20 be paid from revenues deposited in the Centennial Highway Fund Restricted
21 Account;
22 . provides that a portion of the sales and use tax revenue shall be deposited into the
23 Centennial Highway Fund Restricted Account;
24 . provides that a portion of the sales and use tax revenue shall be deposited annually
25 into the Transportation Investment Fund of 2005 if appropriated by the Legislature
26 and not vetoed by the governor;
27 . requires the Division of Finance:

28 . to monitor the highway general obligation bonds that are being paid from
29 revenues deposited into the Centennial Highway Fund Restricted Account; and
30 . report on the status of the bonds to the Executive Appropriations Committee
31 upon request;
32 . requires the Department of Transportation to:
33 . monitor the highway projects that are being funded by the Centennial Highway
34 Fund Restricted Account; and
35 . report on the status of the projects to the Executive Appropriations Committee
36 upon request;
37 . requires the Executive Appropriations Committee to notify the Division of Finance,
38 the State Tax Commission, and the Department of Transportation when all highway
39 projects have been completed and all general highway general obligation bonds
40 have been paid off that are intended to be paid from revenues deposited in the
41 Centennial Highway Fund Restricted Account;
42 . exempts the Transportation Investment Fund of 2005 from spending limit
43 provisions; and
44 . makes technical changes.
45 Monies Appropriated in this Bill:
46 This bill appropriates:
47 . ($89,594,700) from the General Fund to the Centennial Highway Program;
48 . $59,594,700 to the Centennial Highway Program from the Centennial Highway
49 Fund and the Centennial Highway Fund Restricted Account; and
50 . $30,000,000 from the General Fund to the Transportation Investment Fund of 2005
51 for new state highway construction for the fiscal year 2005-06 only.
52 Other Special Clauses:
53 This bill takes effect on July 1, 2005.
54 Utah Code Sections Affected:
55 AMENDS:
56 41-1a-1201, as last amended by Chapters 1 and 212, Laws of Utah 2003
57 59-12-103 (Superseded 07/01/06), as last amended by Chapter 233, Laws of Utah 2005
58 59-12-103 (Effective 07/01/06), as last amended by Chapters 158 and 233, Laws of

59 Utah 2005
60 59-13-304 (Effective 05/02/05), as last amended by Chapter 108, Laws of Utah 2005
61 63-38c-103, as last amended by Chapter 318, Laws of Utah 2004
62 72-2-118, as last amended by Chapter 147, Laws of Utah 2000
63 ENACTS:
64 72-2-124, Utah Code Annotated 1953
65
66 Be it enacted by the Legislature of the state of Utah:
67 Section 1. Section 41-1a-1201 is amended to read:
68 41-1a-1201. Disposition of fees.
69 (1) All fees received and collected under this part shall be transmitted daily to the state
70 treasurer.
71 (2) Except as provided in Subsections (3), (4), and (6), and Sections 41-1a-422 ,
72 41-1a-1220 , and 41-1a-1221 , all fees collected under this part shall be deposited in the
73 Transportation Fund.
74 (3) (a) Funds generated under Subsections 41-1a-1211 (1)(a), (6)(a), and (7) and
75 Section 41-1a-1212 may be used by the commission as a dedicated credit to cover the costs
76 incurred in issuing license plates under Part 4, License Plates and Registration Indicia.
77 (b) Fees for statehood centennial license plates shall be collected and deposited in the
78 Transportation Fund, less production and administrative costs incurred by the commission.
79 (4) All funds available to the commission for purchase and distribution of license
80 plates and decals are nonlapsing.
81 (5) Except as provided in Subsection (3) and Section 41-1a-1205 , the expenses of the
82 commission in enforcing and administering this part shall be provided for by legislative
83 appropriation from the revenues of the Transportation Fund.
84 (6) [The] (a) Except as provided in Subsection (6)(b), the following portions of the
85 registration fees imposed under Section 41-1a-1206 for each vehicle shall be deposited in the
86 Centennial Highway Fund Restricted Account created under Section 72-2-118 :
87 [(a)] (i) $10 of the registration fees imposed under Subsections 41-1a-1206 (1)(a),
88 (1)(b), (2), and (5);
89 [(b)] (ii) $1 of the registration fees imposed under Subsections 41-1a-1206 (1)(c)(i),

90 (1)(c)(ii), and (1)(d)(ii);
91 [(c)] (iii) $2 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(ii);
92 [(d)] (iv) $3 of the registration fee imposed under Subsection 41-1a-1206 (1)(d)(i); and
93 [(e)] (v) $4.50 of the registration fee imposed under Subsection 41-1a-1206 (1)(e)(i).
94 (b) When the highway general obligation bonds have been paid off and the highway
95 projects completed that are intended to be paid from revenues deposited in the Centennial
96 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
97 under Subsection 72-2-118 (6)(d), the portions of the registration fees deposited under
98 Subsection (6)(a) for each vehicle shall be deposited in the Transportation Investment Fund of
99 2005 created by Section 72-2-124 .
100 Section 2. Section 59-12-103 (Superseded 07/01/06) is amended to read:
101 59-12-103 (Superseded 07/01/06). Sales and use tax base -- Rates -- Effective dates
102 -- Use of sales and use tax revenues.
103 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
104 charged for the following transactions:
105 (a) retail sales of tangible personal property made within the state;
106 (b) amounts paid:
107 (i) (A) to a common carrier; or
108 (B) whether the following are municipally or privately owned, to a:
109 (I) telephone service provider; or
110 (II) telegraph corporation as defined in Section 54-2-1 ; and
111 (ii) for:
112 (A) all transportation;
113 (B) telephone service, other than mobile telecommunications service, that originates
114 and terminates within the boundaries of this state;
115 (C) mobile telecommunications service that originates and terminates within the
116 boundaries of one state only to the extent permitted by the Mobile Telecommunications
117 Sourcing Act, 4 U.S.C. Sec. 116 et seq.; or
118 (D) telegraph service;
119 (c) sales of the following for commercial use:
120 (i) gas;

121 (ii) electricity;
122 (iii) heat;
123 (iv) coal;
124 (v) fuel oil; or
125 (vi) other fuels;
126 (d) sales of the following for residential use:
127 (i) gas;
128 (ii) electricity;
129 (iii) heat;
130 (iv) coal;
131 (v) fuel oil; or
132 (vi) other fuels;
133 (e) sales of prepared food;
134 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
135 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,
136 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
137 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
138 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
139 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
140 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
141 horseback rides, sports activities, or any other amusement, entertainment, recreation,
142 exhibition, cultural, or athletic activity;
143 (g) amounts paid or charged for services for repairs or renovations of tangible personal
144 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
145 (i) the tangible personal property; and
146 (ii) parts used in the repairs or renovations of the tangible personal property described
147 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
148 of that tangible personal property;
149 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
150 cleaning or washing of tangible personal property;
151 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court

152 accommodations and services that are regularly rented for less than 30 consecutive days;
153 (j) amounts paid or charged for laundry or dry cleaning services;
154 (k) amounts paid or charged for leases or rentals of tangible personal property if within
155 this state the tangible personal property is:
156 (i) stored;
157 (ii) used; or
158 (iii) otherwise consumed;
159 (l) amounts paid or charged for tangible personal property if within this state the
160 tangible personal property is:
161 (i) stored;
162 (ii) used; or
163 (iii) consumed; and
164 (m) amounts paid or charged for prepaid telephone calling cards.
165 (2) (a) Except as provided in Subsection (2)(b), beginning on July 1, 2001, a state tax
166 and a local tax is imposed on a transaction described in Subsection (1) equal to the sum of:
167 (i) a state tax imposed on the transaction at a rate of 4.75%; and
168 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
169 transaction under this chapter other than this part.
170 (b) Notwithstanding Subsection (2)(a), beginning on July 1, 2001:
171 (i) a state tax and a local tax is imposed on a transaction described in Subsection (1)(d)
172 equal to the sum of:
173 (A) a state tax imposed on the transaction at a rate of 2%; and
174 (B) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
175 transaction under this chapter other than this part; or
176 (ii) if a seller collects a tax in accordance with Subsection 59-12-107 (1)(b) on a
177 transaction described in Subsection (1), a state tax and a local tax is imposed on the transaction
178 equal to the sum of:
179 (A) a state tax imposed on the transaction at a rate of:
180 (I) 4.75% for a transaction other than a transaction described in Subsection (1)(d); or
181 (II) 2% for a transaction described in Subsection (1)(d); and
182 (B) a local tax imposed on the transaction at a rate equal to the sum of the following

183 rates:
184 (I) the tax rate authorized by Section 59-12-204 , but only if all of the counties, cities,
185 and towns in the state impose the tax under Section 59-12-204 ; and
186 (II) the tax rate authorized by Section 59-12-1102 , but only if all of the counties in the
187 state impose the tax under Section 59-12-1102 .
188 (c) Subject to Subsections (2)(d) and (e), a tax rate repeal or tax rate change for a tax
189 rate imposed under the following shall take effect on the first day of a calendar quarter:
190 (i) Subsection (2)(a)(i);
191 (ii) Subsection (2)(b)(i)(A); or
192 (iii) Subsection (2)(b)(ii)(A).
193 (d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
194 effect on the first day of the first billing period:
195 (A) that begins after the effective date of the tax rate increase; and
196 (B) if the billing period for the transaction begins before the effective date of a tax rate
197 increase imposed under:
198 (I) Subsection (2)(a)(i);
199 (II) Subsection (2)(b)(i)(A); or
200 (III) Subsection (2)(b)(ii)(A).
201 (ii) For a transaction described in Subsection (2)(d)(iii), the repeal of a tax or a tax rate
202 decrease shall take effect on the first day of the last billing period:
203 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
204 and
205 (B) if the billing period for the transaction begins before the effective date of the repeal
206 of the tax or the tax rate decrease imposed under:
207 (I) Subsection (2)(a)(i);
208 (II) Subsection (2)(b)(i)(A); or
209 (III) Subsection (2)(b)(ii)(A).
210 (iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
211 (A) Subsection (1)(b);
212 (B) Subsection (1)(c);
213 (C) Subsection (1)(d);

214 (D) Subsection (1)(e);
215 (E) Subsection (1)(f);
216 (F) Subsection (1)(g);
217 (G) Subsection (1)(h);
218 (H) Subsection (1)(i);
219 (I) Subsection (1)(j); or
220 (J) Subsection (1)(k).
221 (e) (i) If a tax due under Subsection (2)(a)(i) or (2)(b)(ii)(A) on a catalogue sale is
222 computed on the basis of sales and use tax rates published in the catalogue, a tax rate repeal or
223 change in a tax rate imposed under Subsection (2)(a)(i) or (2)(b)(ii)(A) takes effect:
224 (A) on the first day of a calendar quarter; and
225 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change
226 under Subsection (2)(a)(i) or (2)(b)(ii)(A).
227 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
228 the commission may by rule define the term "catalogue sale."
229 (3) (a) Except as provided in Subsections (4) through (7), the following state taxes
230 shall be deposited into the General Fund:
231 (i) the tax imposed by Subsection (2)(a)(i);
232 (ii) the tax imposed by Subsection (2)(b)(i)(A); or
233 (iii) the tax imposed by Subsection (2)(b)(ii)(A).
234 (b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(i)(B) shall be
235 distributed to a county, city, or town as provided in this chapter.
236 (c) (i) Notwithstanding any provision of this chapter, each county, city, or town in the
237 state shall receive the county's, city's, or town's proportionate share of the revenues generated
238 by the local tax described in Subsection (2)(b)(ii)(B) as provided in Subsection (3)(c)(ii).
239 (ii) The commission shall determine a county's, city's, or town's proportionate share of
240 the revenues under Subsection (3)(c)(i) by:
241 (A) calculating an amount equal to the population of the county, city, or town divided
242 by the total population of the state; and
243 (B) multiplying the amount determined under Subsection (3)(c)(ii)(A) by the total
244 amount of revenues generated by the local tax under Subsection (2)(b)(ii)(B) for all counties,

245 cities, and towns.
246 (iii) (A) Except as provided in Subsection (3)(c)(iii)(B), population figures for
247 purposes of this section shall be derived from the most recent official census or census estimate
248 of the United States Census Bureau.
249 (B) Notwithstanding Subsection (3)(c)(iii)(A), if a needed population estimate is not
250 available from the United States Census Bureau, population figures shall be derived from the
251 estimate from the Utah Population Estimates Committee created by executive order of the
252 governor.
253 (C) For purposes of this section, the population of a county may only include the
254 population of the unincorporated areas of the county.
255 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
256 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
257 through (g):
258 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
259 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
260 (B) for the fiscal year; or
261 (ii) $17,500,000.
262 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
263 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
264 Department of Natural Resources to:
265 (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
266 protect sensitive plant and animal species; or
267 (B) award grants, up to the amount authorized by the Legislature in an appropriations
268 act, to political subdivisions of the state to implement the measures described in Subsections
269 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
270 (ii) Money transferred to the Department of Natural Resources under Subsection
271 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
272 person to list or attempt to have listed a species as threatened or endangered under the
273 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
274 (iii) At the end of each fiscal year:
275 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources

276 Conservation and Development Fund created in Section 73-10-24 ;
277 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
278 Program Subaccount created in Section 73-10c-5 ; and
279 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
280 Program Subaccount created in Section 73-10c-5 .
281 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
282 Subsection (4)(b)(i) shall be deposited each year in the Agriculture Resource Development
283 Fund created in Section 4-18-6 .
284 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
285 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
286 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
287 water rights.
288 (ii) At the end of each fiscal year:
289 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
290 Conservation and Development Fund created in Section 73-10-24 ;
291 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
292 Program Subaccount created in Section 73-10c-5 ; and
293 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
294 Program Subaccount created in Section 73-10c-5 .
295 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described
296 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
297 Fund created in Section 73-10-24 for use by the Division of Water Resources.
298 (ii) In addition to the uses allowed of the Water Resources Conservation and
299 Development Fund under Section 73-10-24 , the Water Resources Conservation and
300 Development Fund may also be used to:
301 (A) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
302 funds made available to the Division of Water Resources under this section, of potential project
303 features of the Central Utah Project;
304 (B) conduct hydrologic and geotechnical investigations by the Department of Natural
305 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
306 quantifying surface and ground water resources and describing the hydrologic systems of an

307 area in sufficient detail so as to enable local and state resource managers to plan for and
308 accommodate growth in water use without jeopardizing the resource;
309 (C) fund state required dam safety improvements; and
310 (D) protect the state's interest in interstate water compact allocations, including the
311 hiring of technical and legal staff.
312 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
313 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
314 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
315 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
316 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
317 created in Section 73-10c-5 for use by the Division of Drinking Water to:
318 (i) provide for the installation and repair of collection, treatment, storage, and
319 distribution facilities for any public water system, as defined in Section 19-4-102 ;
320 (ii) develop underground sources of water, including springs and wells; and
321 (iii) develop surface water sources.
322 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
323 2003, the lesser of the following amounts shall be used as provided in Subsections (5)(b)
324 through (d):
325 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
326 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
327 (B) for the fiscal year; or
328 (ii) $18,743,000.
329 (b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
330 in Subsection (5)(a) shall be deposited each year in the Transportation Corridor Preservation
331 Revolving Loan Fund created in Section 72-2-117 .
332 (ii) At least 50% of the money deposited in the Transportation Corridor Preservation
333 Revolving Loan Fund under Subsection (5)(b)(i) shall be used to fund loan applications made
334 by the Department of Transportation at the request of local governments.
335 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
336 Subsection (5)(a) shall be transferred each year as nonlapsing dedicated credits to the
337 Department of Transportation for the State Park Access Highways Improvement Program

338 created in Section 72-3-207 .
339 (d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
340 Subsection (5)(a) shall be deposited in the class B and class C roads account to be expended as
341 provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C
342 roads.
343 (6) (a) Notwithstanding Subsection (3)(a) and until Subsection (6)(b) applies,
344 beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
345 Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
346 under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
347 transactions under Subsection (1).
348 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
349 have been paid off and the highway projects completed that are intended to be paid from
350 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
351 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
352 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
353 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
354 by a 1/64% tax rate on the taxable transactions under Subsection (1).
355 (7) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
356 year 2004-05, the commission shall each year on or before the September 30 immediately
357 following the last day of the fiscal year deposit the difference described in Subsection (7)(b)
358 into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is
359 greater than $0.
360 (b) The difference described in Subsection (7)(a) is equal to the difference between:
361 (i) the total amount of the revenues under Subsection (2)(b)(ii)(A) the commission
362 received from sellers collecting a tax in accordance with Subsection 59-12-107 (1)(b) for the
363 fiscal year immediately preceding the September 30 described in Subsection (7)(a); and
364 (ii) $7,279,673.
365 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
366 Subsection (6)(a), and until Subsection (8)(b) applies, for a fiscal year beginning on or after
367 July 1, 2005, the Division of Finance shall deposit $59,594,700 of the revenues generated by
368 the taxes described in Subsections (2)(a)(i) and (2)(b)(i) into the Centennial Highway Fund

369 Restricted Account created by Section 72-2-118 .
370 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
371 Subsections (6)(b) and (9), when the highway general obligation bonds have been paid off and
372 the highway projects completed that are intended to be paid from revenues deposited in the
373 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
374 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit
375 $59,594,700 of the revenues generated by the taxes described in Subsections (2)(a)(i) and
376 (2)(b)(i) into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
377 (9) (a) Notwithstanding Subsection (3)(a), for the fiscal year 2007 only, if the
378 Legislature appropriates monies and the governor does not veto the appropriation, the Division
379 of Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
380 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
381 by a .36% tax rate on the taxable transactions under Subsection (1) minus the amount deposited
382 under Subsection (8), which represents a portion of the amount of revenue generated by the
383 sales and use tax on vehicle and vehicle-related products.
384 (b) Notwithstanding Subsection (3)(a) and in addition to any amount deposited under
385 Subsection (6)(b), for a fiscal year beginning on or after July 1, 2007, if the Legislature
386 appropriates monies and the governor does not veto the appropriation, the Division of Finance
387 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a
388 portion of the taxes listed under Subsection (3)(a) equal to the revenues generated by a .56%
389 tax rate on the taxable transactions under Subsection (1) minus the amount deposited under
390 Subsection (8), which represents a portion of the amount of revenue generated by the sales and
391 use tax on vehicles and vehicle-related products.
392 (c) Nothing in this Subsection (9) requires the governor to include the amounts
393 authorized under this Subsection (9) in the budget that the governor submits to the Legislature
394 under Section 63-38-2 .
395 Section 3. Section 59-12-103 (Effective 07/01/06) is amended to read:
396 59-12-103 (Effective 07/01/06). Sales and use tax base -- Rates -- Effective dates --
397 Use of sales and use tax revenues.
398 (1) A tax is imposed on the purchaser as provided in this part for amounts paid or
399 charged for the following transactions:

400 (a) retail sales of tangible personal property made within the state;
401 (b) amounts paid:
402 (i) (A) to a common carrier; or
403 (B) whether the following are municipally or privately owned, to a:
404 (I) telephone service provider; or
405 (II) telegraph corporation as defined in Section 54-2-1 ; and
406 (ii) for:
407 (A) all transportation;
408 (B) telephone service, other than mobile telecommunications service, that originates
409 and terminates within the boundaries of this state;
410 (C) mobile telecommunications service that originates and terminates within the
411 boundaries of one state only to the extent permitted by the Mobile Telecommunications
412 Sourcing Act, 4 U.S.C. Sec.116 et seq.; or
413 (D) telegraph service;
414 (c) sales of the following for commercial use:
415 (i) gas;
416 (ii) electricity;
417 (iii) heat;
418 (iv) coal;
419 (v) fuel oil; or
420 (vi) other fuels;
421 (d) sales of the following for residential use:
422 (i) gas;
423 (ii) electricity;
424 (iii) heat;
425 (iv) coal;
426 (v) fuel oil; or
427 (vi) other fuels;
428 (e) sales of prepared food;
429 (f) except as provided in Section 59-12-104 , amounts paid or charged as admission or
430 user fees for theaters, movies, operas, museums, planetariums, shows of any type or nature,

431 exhibitions, concerts, carnivals, amusement parks, amusement rides, circuses, menageries,
432 fairs, races, contests, sporting events, dances, boxing matches, wrestling matches, closed circuit
433 television broadcasts, billiard parlors, pool parlors, bowling lanes, golf, miniature golf, golf
434 driving ranges, batting cages, skating rinks, ski lifts, ski runs, ski trails, snowmobile trails,
435 tennis courts, swimming pools, water slides, river runs, jeep tours, boat tours, scenic cruises,
436 horseback rides, sports activities, or any other amusement, entertainment, recreation,
437 exhibition, cultural, or athletic activity;
438 (g) amounts paid or charged for services for repairs or renovations of tangible personal
439 property, unless Section 59-12-104 provides for an exemption from sales and use tax for:
440 (i) the tangible personal property; and
441 (ii) parts used in the repairs or renovations of the tangible personal property described
442 in Subsection (1)(g)(i), whether or not any parts are actually used in the repairs or renovations
443 of that tangible personal property;
444 (h) except as provided in Subsection 59-12-104 (7), amounts paid or charged for
445 cleaning or washing of tangible personal property;
446 (i) amounts paid or charged for tourist home, hotel, motel, or trailer court
447 accommodations and services that are regularly rented for less than 30 consecutive days;
448 (j) amounts paid or charged for laundry or dry cleaning services;
449 (k) amounts paid or charged for leases or rentals of tangible personal property if within
450 this state the tangible personal property is:
451 (i) stored;
452 (ii) used; or
453 (iii) otherwise consumed;
454 (l) amounts paid or charged for tangible personal property if within this state the
455 tangible personal property is:
456 (i) stored;
457 (ii) used; or
458 (iii) consumed; and
459 (m) amounts paid or charged for prepaid telephone calling cards.
460 (2) (a) Except as provided in Subsection (2)(b), beginning on July 1, 2001, a state tax
461 and a local tax is imposed on a transaction described in Subsection (1) equal to the sum of:

462 (i) a state tax imposed on the transaction at a rate of 4.75%; and
463 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
464 transaction under this chapter other than this part.
465 (b) Notwithstanding Subsection (2)(a), beginning on July 1, 2001, a state tax and a
466 local tax is imposed on a transaction described in Subsection (1)(d) equal to the sum of:
467 (i) a state tax imposed on the transaction at a rate of 2%; and
468 (ii) a local tax equal to the sum of the tax rates a county, city, or town imposes on the
469 transaction under this chapter other than this part.
470 (c) Subject to Subsections (2)(d) and (e), a tax rate repeal or tax rate change for a tax
471 rate imposed under the following shall take effect on the first day of a calendar quarter:
472 (i) Subsection (2)(a)(i); or
473 (ii) Subsection (2)(b)(i).
474 (d) (i) For a transaction described in Subsection (2)(d)(iii), a tax rate increase shall take
475 effect on the first day of the first billing period:
476 (A) that begins after the effective date of the tax rate increase; and
477 (B) if the billing period for the transaction begins before the effective date of a tax rate
478 increase imposed under:
479 (I) Subsection (2)(a)(i); or
480 (II) Subsection (2)(b)(i).
481 (ii) For a transaction described in Subsection (2)(d)(iii), the repeal of a tax or a tax rate
482 decrease shall take effect on the first day of the last billing period:
483 (A) that began before the effective date of the repeal of the tax or the tax rate decrease;
484 and
485 (B) if the billing period for the transaction begins before the effective date of the repeal
486 of the tax or the tax rate decrease imposed under:
487 (I) Subsection (2)(a)(i); or
488 (II) Subsection (2)(b)(i).
489 (iii) Subsections (2)(d)(i) and (ii) apply to transactions subject to a tax under:
490 (A) Subsection (1)(b);
491 (B) Subsection (1)(c);
492 (C) Subsection (1)(d);

493 (D) Subsection (1)(e);
494 (E) Subsection (1)(f);
495 (F) Subsection (1)(g);
496 (G) Subsection (1)(h);
497 (H) Subsection (1)(i);
498 (I) Subsection (1)(j); or
499 (J) Subsection (1)(k).
500 (e) (i) If a tax due under Subsection (2)(a)(i) on a catalogue sale is computed on the
501 basis of sales and use tax rates published in the catalogue, a tax rate repeal or change in a tax
502 rate imposed under Subsection (2)(a)(i) takes effect:
503 (A) on the first day of a calendar quarter; and
504 (B) beginning 60 days after the effective date of the tax rate repeal or tax rate change
505 under Subsection (2)(a)(i).
506 (ii) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act,
507 the commission may by rule define the term "catalogue sale."
508 (3) (a) Except as provided in Subsections (4) through (7), the following state taxes
509 shall be deposited into the General Fund:
510 (i) the tax imposed by Subsection (2)(a)(i); or
511 (ii) the tax imposed by Subsection (2)(b)(i).
512 (b) The local taxes described in Subsections (2)(a)(ii) and (2)(b)(ii) shall be distributed
513 to a county, city, or town as provided in this chapter.
514 (4) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
515 2003, the lesser of the following amounts shall be used as provided in Subsections (4)(b)
516 through (g):
517 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
518 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and
519 (B) for the fiscal year; or
520 (ii) $17,500,000.
521 (b) (i) For a fiscal year beginning on or after July 1, 2003, 14% of the amount
522 described in Subsection (4)(a) shall be transferred each year as dedicated credits to the
523 Department of Natural Resources to:

524 (A) implement the measures described in Subsections 63-34-14 (4)(a) through (d) to
525 protect sensitive plant and animal species; or
526 (B) award grants, up to the amount authorized by the Legislature in an appropriations
527 act, to political subdivisions of the state to implement the measures described in Subsections
528 63-34-14 (4)(a) through (d) to protect sensitive plant and animal species.
529 (ii) Money transferred to the Department of Natural Resources under Subsection
530 (4)(b)(i) may not be used to assist the United States Fish and Wildlife Service or any other
531 person to list or attempt to have listed a species as threatened or endangered under the
532 Endangered Species Act of 1973, 16 U.S.C. Sec. 1531 et seq.
533 (iii) At the end of each fiscal year:
534 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
535 Conservation and Development Fund created in Section 73-10-24 ;
536 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
537 Program Subaccount created in Section 73-10c-5 ; and
538 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
539 Program Subaccount created in Section 73-10c-5 .
540 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
541 Subsection (4)(b)(i) shall be deposited each year in the Agriculture Resource Development
542 Fund created in Section 4-18-6 .
543 (d) (i) For a fiscal year beginning on or after July 1, 2003, 1% of the amount described
544 in Subsection (4)(a) shall be transferred each year as dedicated credits to the Division of Water
545 Rights to cover the costs incurred in hiring legal and technical staff for the adjudication of
546 water rights.
547 (ii) At the end of each fiscal year:
548 (A) 50% of any unexpended dedicated credits shall lapse to the Water Resources
549 Conservation and Development Fund created in Section 73-10-24 ;
550 (B) 25% of any unexpended dedicated credits shall lapse to the Utah Wastewater Loan
551 Program Subaccount created in Section 73-10c-5 ; and
552 (C) 25% of any unexpended dedicated credits shall lapse to the Drinking Water Loan
553 Program Subaccount created in Section 73-10c-5 .
554 (e) (i) For a fiscal year beginning on or after July 1, 2003, 41% of the amount described

555 in Subsection (4)(a) shall be deposited in the Water Resources Conservation and Development
556 Fund created in Section 73-10-24 for use by the Division of Water Resources.
557 (ii) In addition to the uses allowed of the Water Resources Conservation and
558 Development Fund under Section 73-10-24 , the Water Resources Conservation and
559 Development Fund may also be used to:
560 (A) provide a portion of the local cost share, not to exceed in any fiscal year 50% of the
561 funds made available to the Division of Water Resources under this section, of potential project
562 features of the Central Utah Project;
563 (B) conduct hydrologic and geotechnical investigations by the Department of Natural
564 Resources in a cooperative effort with other state, federal, or local entities, for the purpose of
565 quantifying surface and ground water resources and describing the hydrologic systems of an
566 area in sufficient detail so as to enable local and state resource managers to plan for and
567 accommodate growth in water use without jeopardizing the resource;
568 (C) fund state required dam safety improvements; and
569 (D) protect the state's interest in interstate water compact allocations, including the
570 hiring of technical and legal staff.
571 (f) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
572 in Subsection (4)(a) shall be deposited in the Utah Wastewater Loan Program Subaccount
573 created in Section 73-10c-5 for use by the Water Quality Board to fund wastewater projects.
574 (g) For a fiscal year beginning on or after July 1, 2003, 20.5% of the amount described
575 in Subsection (4)(a) shall be deposited in the Drinking Water Loan Program Subaccount
576 created in Section 73-10c-5 for use by the Division of Drinking Water to:
577 (i) provide for the installation and repair of collection, treatment, storage, and
578 distribution facilities for any public water system, as defined in Section 19-4-102 ;
579 (ii) develop underground sources of water, including springs and wells; and
580 (iii) develop surface water sources.
581 (5) (a) Notwithstanding Subsection (3)(a), for a fiscal year beginning on or after July 1,
582 2003, the lesser of the following amounts shall be used as provided in Subsections (5)(b)
583 through (d):
584 (i) for taxes listed under Subsection (3)(a), the amount of tax revenue generated:
585 (A) by a 1/16% tax rate on the transactions described in Subsection (1); and

586 (B) for the fiscal year; or
587 (ii) $18,743,000.
588 (b) (i) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described
589 in Subsection (5)(a) shall be deposited each year in the Transportation Corridor Preservation
590 Revolving Loan Fund created in Section 72-2-117 .
591 (ii) At least 50% of the money deposited in the Transportation Corridor Preservation
592 Revolving Loan Fund under Subsection (5)(b)(i) shall be used to fund loan applications made
593 by the Department of Transportation at the request of local governments.
594 (c) For a fiscal year beginning on or after July 1, 2003, 3% of the amount described in
595 Subsection (5)(a) shall be transferred each year as nonlapsing dedicated credits to the
596 Department of Transportation for the State Park Access Highways Improvement Program
597 created in Section 72-3-207 .
598 (d) For a fiscal year beginning on or after July 1, 2003, 94% of the amount described in
599 Subsection (5)(a) shall be deposited in the class B and class C roads account to be expended as
600 provided in Title 72, Chapter 2, Transportation Finances Act, for the use of class B and C
601 roads.
602 (6) (a) Notwithstanding Subsection (3)(a) and until Subsection (6)(b) applies,
603 beginning on January 1, 2000, the Division of Finance shall deposit into the Centennial
604 Highway Fund Restricted Account created in Section 72-2-118 a portion of the taxes listed
605 under Subsection (3)(a) equal to the revenues generated by a 1/64% tax rate on the taxable
606 transactions under Subsection (1).
607 (b) Notwithstanding Subsection (3)(a), when the highway general obligation bonds
608 have been paid off and the highway projects completed that are intended to be paid from
609 revenues deposited in the Centennial Highway Fund Restricted Account as determined by the
610 Executive Appropriations Committee under Subsection 72-2-118 (6)(d), the Division of
611 Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
612 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
613 by a 1/64% tax rate on the taxable transactions under Subsection (1).
614 (7) (a) Notwithstanding Subsection (3)(a), for fiscal years beginning on or after fiscal
615 year 2004-05, the commission shall each year on or before the September 30 immediately
616 following the last day of the fiscal year deposit the difference described in Subsection (7)(b)

617 into the Remote Sales Restricted Account created in Section 59-12-103.2 if that difference is
618 greater than $0.
619 (b) The difference described in Subsection (7)(a) is equal to the difference between:
620 (i) the total amount of the following revenues the commission received from sellers
621 collecting a tax in accordance with Subsection 59-12-107 (1)(b) for the fiscal year immediately
622 preceding the September 30 described in Subsection (7)(a):
623 (A) revenues under Subsection (2)(a)(i); and
624 (B) revenues under Subsection (2)(b)(i); and
625 (ii) $7,279,673.
626 (8) (a) Notwithstanding Subsection (3)(a), in addition to the amount deposited in
627 Subsection (6)(a), and until Subsection (8)(b) applies, for a fiscal year beginning on or after
628 July 1, 2005, the Division of Finance shall deposit $59,594,700 of the revenues generated by
629 the taxes described in Subsections (2)(a)(i) and (2)(b)(i) into the Centennial Highway Fund
630 Restricted Account created by Section 72-2-118 .
631 (b) Notwithstanding Subsection (3)(a) and in addition to the amounts deposited under
632 Subsections (6)(b) and (9), when the highway general obligation bonds have been paid off and
633 the highway projects completed that are intended to be paid from revenues deposited in the
634 Centennial Highway Fund Restricted Account as determined by the Executive Appropriations
635 Committee under Subsection 72-2-118 (6)(d), the Division of Finance shall deposit
636 $59,594,700 of the revenues generated by the taxes described in Subsections (2)(a)(i) and
637 (2)(b)(i) into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
638 (9) (a) Notwithstanding Subsection (3)(a), for the fiscal year 2007 only, if the
639 Legislature appropriates monies and the governor does not veto the appropriation, the Division
640 of Finance shall deposit into the Transportation Investment Fund of 2005 created by Section
641 72-2-124 a portion of the taxes listed under Subsection (3)(a) equal to the revenues generated
642 by a .36% tax rate on the taxable transactions under Subsection (1) minus the amount deposited
643 under Subsection (8), which represents a portion of the amount of revenue generated by the
644 sales and use tax on vehicles and vehicle-related products.
645 (b) Notwithstanding Subsection (3)(a) and in addition to any amount deposited under
646 Subsection (6)(b), for a fiscal year beginning on or after July 1, 2007, if the Legislature
647 appropriates monies and the governor does not veto the appropriation, the Division of Finance

648 shall deposit into the Transportation Investment Fund of 2005 created by Section 72-2-124 a
649 portion of the taxes listed under Subsection (3)(a) equal to the revenues generated by a .56%
650 tax rate on the taxable transactions under Subsection (1) minus the amount deposited under
651 Subsection (8), which represents a portion of the amount of revenue generated by the sales and
652 use tax on vehicles and vehicle-related products.
653 (c) Nothing in this Subsection (9) requires the governor to include the amounts
654 authorized under this Subsection (9) in the budget that the governor submits to the Legislature
655 under Section 63-38-2 .
656 Section 4. Section 59-13-304 (Effective 05/02/05) is amended to read:
657 59-13-304 (Effective 05/02/05). Exemptions from Special Fuel Tax -- Clean
658 Special Fuel Tax -- Certificate required -- Fees for certificates -- Inspection of vehicles --
659 Exemptions.
660 (1) (a) Except as provided in Subsection (4), a user of special fuel who owns a vehicle
661 powered by a clean special fuel as defined under Section 59-13-102 shall pay a clean special
662 fuel tax as provided under this section for use of clean special fuel.
663 (b) A user of special fuel who qualifies for the clean special fuel tax shall annually
664 purchase from the commission a clean special fuel tax certificate for each vehicle owned or
665 leased that is powered by a clean special fuel.
666 (c) Clean special fuel tax certificates are provided to encourage the use of clean fuels to
667 reduce air pollution.
668 (2) (a) The fee for a clean special fuel tax certificate is:
669 (i) 70/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)(a), rounded up
670 to the nearest dollar, for qualified motor vehicles as defined under Section 59-13-102 ; and
671 (ii) 36/.19 of the tax per gallon imposed under Subsection 59-13-201 (1)(a), rounded up
672 to the nearest dollar, for other vehicles.
673 (b) The commission may require each vehicle to be inspected for safe operation before
674 issuing the certificate.
675 (c) Each vehicle shall be equipped with an approved and properly installed carburetion
676 system if it is powered by a fuel that is gaseous at standard atmospheric conditions.
677 (3) (a) Beginning January 1, 2001 through December 31, 2010, there is imposed a
678 surcharge of $35 on each clean special fuel tax certificate issued under this section.

679 (b) [Surcharges] (i) Until Subsection (3)(b)(ii) applies, surcharges imposed under
680 Subsection (3)(a) shall be deposited into the Centennial Highway Fund Restricted Account
681 created under Section 72-2-118 .
682 (ii) When the highway general obligation bonds have been paid off and the highway
683 projects completed that are intended to be paid from revenues deposited in the Centennial
684 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
685 under Subsection 72-2-118 (6)(d), the surcharge imposed under Subsection (3)(a) shall be
686 deposited into the Transportation Investment Fund of 2005 created by Section 72-2-124 .
687 (4) A governmental entity identified in Subsection 59-13-301 (9) that owns or leases a
688 vehicle powered by a special fuel that qualifies as a clean special fuel is exempt from the clean
689 special fuel tax imposed under this section.
690 Section 5. Section 63-38c-103 is amended to read:
691 63-38c-103. Definitions.
692 As used in this chapter:
693 (1) (a) "Appropriations" means actual unrestricted capital and operating appropriations
694 from unrestricted General Fund sources and from non-Uniform School Fund income tax
695 revenues as presented in the governor's executive budgets.
696 (b) "Appropriation" includes appropriations that are contingent upon available
697 surpluses in the General Fund.
698 (c) "Appropriations" does not mean:
699 (i) debt service expenditures;
700 (ii) emergency expenditures;
701 (iii) expenditures from all other fund or subfund sources presented in the executive
702 budgets;
703 (iv) transfers into, or appropriations made to, the General Fund Budget Reserve
704 Account established in Section 63-38-2.5 ;
705 (v) transfers into, or appropriations made to, the Education Budget Reserve Account
706 established in Section 63-38-2.6;
707 (vi) monies appropriated to fund the total one-time project costs for the construction of
708 capital developments as defined in Section 63A-5-104 ; [or]
709 (vii) appropriations made to the Centennial Highway Fund Restricted Account created

710 by Section 72-2-118 [.]; or
711 (viii) appropriations made to the Transportation Investment Fund of 2005 created by
712 Section 72-2-124 .
713 (2) "Base year real per capita appropriations" means the result obtained for the state by
714 dividing the fiscal year 1985 actual appropriations of the state less debt monies by:
715 (a) the state's July 1, 1983 population; and
716 (b) the fiscal year 1983 inflation index divided by 100.
717 (3) "Calendar year" means the time period beginning on January 1 of any given year
718 and ending on December 31 of the same year.
719 (4) "Fiscal emergency" means an extraordinary occurrence requiring immediate
720 expenditures and includes the settlement under Chapter 4, Laws of Utah 1988, Fourth Special
721 Session.
722 (5) "Fiscal year" means the time period beginning on July 1 of any given year and
723 ending on June 30 of the subsequent year.
724 (6) "Fiscal year 1985 actual base year appropriations" means fiscal year 1985 actual
725 capital and operations appropriations from General Fund and non-Uniform School Fund
726 income tax revenue sources, less debt monies.
727 (7) "Inflation index" means the change in the general price level of goods and services
728 as measured by the Gross National Product Implicit Price Deflator of the Bureau of Economic
729 Analysis, U.S. Department of Commerce calculated as provided in Section 63-38c-202 .
730 (8) (a) "Maximum allowable appropriations limit" means the appropriations that could
731 be, or could have been, spent in any given year under the limitations of this chapter.
732 (b) "Maximum allowable appropriations limit" does not mean actual appropriations
733 spent or actual expenditures.
734 (9) "Most recent fiscal year's inflation index" means the fiscal year inflation index two
735 fiscal years previous to the fiscal year for which the maximum allowable inflation and
736 population appropriations limit is being computed under this chapter.
737 (10) "Most recent fiscal year's population" means the fiscal year population two fiscal
738 years previous to the fiscal year for which the maximum allowable inflation and population
739 appropriations limit is being computed under this chapter.
740 (11) "Population" means the number of residents of the state as of July 1 of each year

741 as calculated by the Governor's Office of Planning and Budget according to the procedures and
742 requirements of Section 63-38c-202 .
743 (12) "Revenues" means the revenues of the state from every tax, penalty, receipt, and
744 other monetary exaction and interest connected with it that are recorded as unrestricted revenue
745 of the General Fund and from non-Uniform School Fund income tax revenues, except as
746 specifically exempted by this chapter.
747 (13) "Security" means any bond, note, warrant, or other evidence of indebtedness,
748 whether or not the bond, note, warrant, or other evidence of indebtedness is or constitutes an
749 "indebtedness" within the meaning of any provision of the constitution or laws of this state.
750 Section 6. Section 72-2-118 is amended to read:
751 72-2-118. Centennial Highway Fund Restricted Account.
752 (1) There is created [a special revenue fund] a restricted account entitled the Centennial
753 Highway Fund Restricted Account within the Transportation Investment Fund of 2005 created
754 by Section 72-2-124 .
755 (2) The [fund] account consists of monies generated from the following revenue
756 sources:
757 (a) any voluntary contributions received for the construction, major reconstruction, or
758 major renovation of state or federal highways;
759 (b) appropriations made to the fund by the Legislature;
760 (c) registration fees designated under Subsection 41-1a-1201 (6)(a); and
761 (d) the sales and use tax amounts provided for in Section 59-12-103 .
762 (3) (a) The [fund] account shall earn interest.
763 (b) All interest earned on [fund] account monies shall be deposited into the [fund]
764 account.
765 (4) The executive director may use [fund] account monies, as prioritized by the
766 Transportation Commission, only to pay the costs of construction, major reconstruction, or
767 major renovation to state and federal highways.
768 (5) When the highway general obligation bonds have been paid off and the highway
769 projects completed that are intended to be paid from revenues deposited in the account as
770 determined by the Executive Appropriations Committee under Subsection (6)(d), the Division
771 of Finance shall transfer any existing balance in the account into the Transportation Investment

772 Fund of 2005 created by Section 72-2-124 .
773 (6) (a) The Division of Finance shall monitor the highway general obligation bonds
774 that are being paid from revenues deposited in the account.
775 (b) The department shall monitor the highway construction, major reconstruction, or
776 major renovation projects that are being paid from revenues deposited in the account.
777 (c) Upon request by the Executive Appropriations Committee of the Legislature:
778 (i) the Division of Finance shall report to the committee the status of all highway
779 general obligation bonds that are being paid from revenues deposited in the account; and
780 (ii) the department shall report to the committee the status of all highway construction,
781 major reconstruction, or major renovation projects that are being paid from revenues deposited
782 in the account.
783 (d) The Executive Appropriations Committee of the Legislature shall notify the State
784 Tax Commission, the department, and the Division of Finance when:
785 (i) all highway general obligation bonds that are intended to paid from revenues
786 deposited in the account have been paid off; and
787 (ii) all highway projects that are intended to be paid from revenues deposited in the
788 account have been completed.
789 Section 7. Section 72-2-124 is enacted to read:
790 72-2-124. Transportation Investment Fund of 2005.
791 (1) There is created a special revenue fund entitled the Transportation Investment Fund
792 of 2005.
793 (2) The fund consists of monies generated from the following sources:
794 (a) any voluntary contributions received for the maintenance, construction,
795 reconstruction, or renovation of state and federal highways;
796 (b) appropriations made to the fund by the Legislature; and
797 (c) the sales and use tax amounts provided for in Subsection 59-12-103 (9).
798 (3) When the highway general obligation bonds have been paid off and the highway
799 projects completed that are intended to be paid from revenues deposited in the Centennial
800 Highway Fund Restricted Account as determined by the Executive Appropriations Committee
801 under Subsection 72-2-118 (6)(d), the fund shall also consist of monies generated from the
802 following sources:

803 (a) registration fees designated under Subsection 41-1a-1201 (6)(a);
804 (b) the clean special fuel tax certificate surcharge under Subsection 59-13-304 (3); and
805 (c) the sales and use tax amounts provided for in Subsections 59-12-103 (6)(b) and
806 (8)(b).
807 (4) (a) The fund shall earn interest.
808 (b) All interest earned on fund monies shall be deposited into the fund.
809 (5) (a) Except as provided in Subsection (5)(b), the executive director may use fund
810 monies only to pay the costs of maintenance, construction, reconstruction, or renovation to
811 state and federal highways prioritized by the Transportation Commission through the
812 prioritization process for new transportation capacity projects adopted under Section 72-1-304 .
813 (b) The executive director may use fund monies deposited into the fund in fiscal year
814 2006 only to pay the costs of maintenance, construction, reconstruction, or renovation to state
815 and federal highways prioritized by the Transportation Commission.
816 Section 8. Appropriation.
817 Under the terms and conditions of Section 63-38-3 , the following sums of money are
818 appropriated from resources not otherwise appropriated, or reduced from amounts previously
819 appropriated, out of the funds or fund accounts indicated for the use and support of the
820 government of the State of Utah for the fiscal year beginning July 1, 2005 and ending June 30,
821 2006. This is in addition to or a subtraction from amounts previously appropriated for fiscal
822 year 2006.
823 To Department of Transportation - Centennial Highway Program
824 From General Fund (59,594,700)
825 From General Fund, One-time (30,000,000)
826 Schedule of Programs:
827 Centennial Highway Program (89,594,700)
828 To Department of Transportation - Centennial Highway Program
829 From Centennial Highway Fund (21,013,000)
830 From Centennial Highway Fund Restricted Account 80,607,700
831 Schedule of Programs:
832 Centennial Highway Program 59,594,700
833 To Department of Transportation - Transportation Investment Fund of 2005

834 From General Fund, One-time 30,000,000
835 Schedule of Programs:
836 Transportation Investment Fund of 2005 30,000,000
837 To Department of Transportation - Construction Management
838 From Transportation Investment Fund of 2005 30,000,000
839 Schedule of Programs:
840 State Construction - New 30,000,000
841 Section 9. Effective date.
842 This bill takes effect on July 1, 2005.




Legislative Review Note
as of 4-13-05 1:27 PM

Based on a limited legal review, this legislation has not been determined to have a high
probability of being held unconstitutional.

Office of Legislative Research and General Counsel